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AGENDA RECOMMENDATION       
Public Hearings   6.C.
City Council Regular Meeting
Meeting Date:
09/09/2024

Agenda Item:

Motion authorizing submittal of the Consolidated Annual Performance Evaluation Report (CAPER) for the Community Development Block Grant (CDBG) Program.

Recommendation/Action(s):

Public hearing followed by motion authorizing submittal of the CAPER.

Summary:

On June 8, 2020, the City Council adopted the City of Mankato 2020–2024 Consolidated Plan for utilization of Community Development Block Grant (CDBG) funding. The plan details how the expected funding will be used in conformance with CDBG guidelines. The fourth funding year of this plan ended on June 30, 2024. The federal regulations that govern the CDBG program require two public hearings every year. The purpose of the first hearing is to review the Action Plan for the coming year and the Consolidated Plan (when applicable), which was held by the City Council on April 22, 2024. The purpose of the second hearing is to review the program performance for the previous year, which is the subject of the requested action and summarized in a standardized format referred to as the Consolidated Annual Performance Evaluation Report or CAPER. Staff has completed the CAPER and it is attached.
  
The 2023 program year operated from July 1, 2023, and ended June 30, 2024. Activities completed during the 2023 program year included activities committed from prior program years and include the following:
 
The City of Mankato made progress in achieving the goals of the 2023 Action Plan. Activities completed during the 2023 program year include the following:
 
  • Public service grants were provided benefitting low to moderate income households to help meet the identified needs of health services, food support, homeless shelter operations, COVID-19 vaccination clinics, affordable child care, chore services for seniors and education of special needs groups.
  • Park improvements were completed in Erlandson Park, which included replacement of playground equipment, improving the quality of life for a neighborhood with a high population of low to moderate income households.
  • Owner-occupied housing rehabilitation was completed on four dwelling units. This activity assists with preserving the city's affordable housing stock, removal of lead-based paint hazards and improving the living conditions for low to moderate income households.
  • Rental housing rehabilitation was completed on eight dwelling units. This activity assists with preserving the city's affordable rental housing stock and improves the living conditions for low to moderate income households.
 
Additionally, CDBG and CDBG-CV funds from prior program years were spent assisting 82 low to moderate income households with subsistence payments. This activity provided assistance with making payment to their landlord and/or utility provider for past due rent, past due utilities, rent deposit and rent payments. Subsistence payments helped to prevent eviction and homelessness.
 
Activities underway, but not yet complete include the following:
 
  • Park improvements to Lions Park.
  • Owner-occupied housing rehabilitation is underway on six single family dwellings.
  • Affordable housing projects utilize CDBG funds towards site acquisition costs. Rehabilitation began in 2024 and is underway at Walnut Towers, which will preserve 86 units of existing affordable housing. It is anticipated the rehabilitation will be complete by the end of 2024. Construction of Lewis Lofts began in 2024 and is underway, which will create 64 units of affordable senior housing. It is anticipated construction will be complete in 2025.

The following table shows the Action Plan for the 2023 program year, including the funds obligated and spent during the program year. The city has a total of eight years to expend funds from each program year.
 
Activity Goals for the 2023 Program year Obligated Disbursed Encumbered
Owner Occupied Housing Rehabilitation $107,093 $5,000 $102,093
Rental Housing Rehabilitation $100,000 $71,038 $28,962
Park Improvements $100,000 $45,991.70 $54,008.30
Public Services $59,487 $48,487 $11,000
Administration $30,000 $19,621.26 $10,378.74

The CAPER was posted for public comment on August 24, 2024, and will run through September 8, 2024. Any public comments received will be reported at the time of the public hearing on September 9, 2024.
 

Attachments